Deciding whether to use cloud-based email services like Microsoft 365 or maintain your own local email servers is a key choice for Australian small and mid-sized businesses. Cloud email means your emails and related data are hosted on remote servers managed by a provider, accessible via the internet. Local servers mean your business keeps all email data on physical hardware located on-site or in a private data centre you control.
Why this matters for Australian SMBs
This decision affects your business's ability to stay connected, protect sensitive information, and recover quickly from disruptions. With cloud email, downtime caused by hardware failure or local disasters is less likely because the provider has multiple data centres and redundancy built-in. Local servers can be vulnerable if your IT team isn't able to maintain hardware or respond quickly to issues. Either way, email downtime can halt your staff's communication, delay customer responses, and damage your reputation.
Data loss and cyber risks are also central concerns. Cloud providers like Microsoft 365 invest heavily in security, including encryption, spam filtering, and continuous updates. However, it's important to understand that cloud security also depends on your internal controls like strong passwords and user training. Local servers can be locked down physically but require ongoing patching, backups, and monitoring to avoid breaches or accidental data loss.
A real-world example
Consider a 50-person Australian accounting firm that initially ran email on local servers. When a hardware failure caused a week-long outage, they lost billable hours and client trust. After switching to Microsoft 365, their IT partner helped migrate email and set up multi-factor authentication. This reduced downtime risk and improved security. The IT partner also configured automatic backups and trained staff on phishing awareness, helping the firm meet privacy expectations under Australian regulations.
Checklist: What to consider and ask
- Ask your IT provider: How do you handle email backups and disaster recovery for cloud vs local setups?
- What security measures are in place, such as spam filtering, encryption, and multi-factor authentication?
- How quickly can you restore email service in case of an outage?
- Check your current email access controls: Who has admin rights? Are passwords strong and changed regularly?
- Review your data compliance needs, especially if you handle sensitive customer information.
- Compare service level agreements (SLAs) on uptime guarantees, support response times, and maintenance windows.
- Consider staff productivity: Can your team access email remotely and securely?
Next steps
Choosing between cloud email and local servers depends on your business size, IT resources, security needs, and budget. For many Australian SMBs, cloud email offers better resilience, security, and flexibility without the complexity of managing hardware. However, a tailored approach is best. Speak with a trusted managed IT provider or IT advisor who understands your industry and can help assess your current setup, risks, and goals. This will help you make an informed decision that supports your business continuity and growth.